2019 CORPORATEPRESENTATION

June 4, 2019

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Forward-Looking StatementsVarious statements in this presentation, including, but not limited to, Vanda’s financial guidance for 2019, are “forward-looking statements” under thesecurities laws. Forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, anduncertainties. Important factors that could cause actual results to differ materially from those reflected in Vanda’s forward-looking statements include,among others: Vanda’s ability to continue to commercialize HETLIOZ® for the treatment of Non-24 in the U.S. and Europe; uncertainty as to Vanda’s abilityto increase market awareness of Non-24 and the market acceptance of HETLIOZ®; Vanda’s ability to continue to generate U.S. sales of Fanapt® for thetreatment of schizophrenia; Vanda’s dependence on third-party manufacturers to manufacture HETLIOZ® and Fanapt® in sufficient quantities and quality;Vanda’s level of success in commercializing HETLIOZ® and Fanapt® in new markets; Vanda’s ability to prepare, file, prosecute, defend and enforce anypatent claims and other intellectual property rights; Vanda’s ability to reach agreement with the FDA regarding its regulatory strategy, preclinical animaltesting requirements and proposed path to approval for tradipitant; a loss of rights to develop and commercialize Vanda’s products under its licenseagreements; the ability to obtain and maintain regulatory approval of Vanda’s products, and the labeling for any approved products; the timing and successof preclinical studies and clinical trials; a failure of Vanda’s products to be demonstrably safe and effective; the size and growth of the potential markets forVanda’s products and the ability to serve those markets; Vanda’s expectations regarding trends with respect to its revenues, costs, expenses, liabilities andcash, cash equivalents and marketable securities; the scope, progress, expansion, and costs of developing and commercializing Vanda’s products; Vanda’sfailure to identify or obtain rights to new products; a loss of any of Vanda’s key scientists or management personnel; limitations on Vanda’s ability to utilizesome or all of its prior net operating losses and orphan drug and research and development credits; the costs and effects of litigation; Vanda’s ability toobtain the capital necessary to fund its research and development or commercial activities; losses incurred from product liability claims made againstVanda; use of existing cash, cash equivalents and marketable securities and other factors that are described in the “Risk Factors” and “Management’sDiscussion and Analysis of Financial Condition and Results of Operations” sections of Vanda’s annual report on Form 10-K for the fiscal year endedDecember 31, 2018 and quarterly report on Form 10-Q for the quarter ended March 31, 2019, which are on file with the SEC and available on the SEC'swebsite at www.sec.gov. In addition, other unknown or unpredictable factors could also affect Vanda’s results. There can be no assurance that the actualresults or developments anticipated by Vanda will be realized or, even if substantially realized, that they will have the expected consequences to, or effectson, Vanda. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved.All written and verbal forward-looking statements attributable to Vanda or any person acting on its behalf are expressly qualified in their entirety by thecautionary statements contained or referred to herein. Vanda cautions investors not to rely too heavily on the forward-looking statements Vanda makes orthat are made on its behalf. The information in this presentation is provided only as of the date of this presentation, and Vanda undertakes no obligation,and specifically declines any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events,or otherwise.

http://www.sec.gov/

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Strategy for Long-Term Success

Expand into new geographies

Lifecycle management and product optimization

Developing and commercializing innovative therapies to address

high unmet medical needs & improve the lives of patients

Diversified pipeline in high-growth niche

therapeutic markets

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Marketed Assets

US - Schizophrenia

ROW - SchizophreniaDistribution partners

Circadian Rhythms Psychiatry

US - Non-24EU - Non-24

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5

Clinical Development Pipeline:

Product Indication Preclinical Phase I Phase II Phase III Regulatory

Jet Lag Disorder

Smith-Magenis Syndrome (SMS)

Non-24 Pediatric

Delayed Sleep Phase Disorder (DSPD)

Long Acting Injectable (LAI)

Bipolar Disorder(Oral tablets)

Atopic Dermatitis

Gastroparesis

Motion Sickness

HematologicMalignancies

Tradipitant

VTR-297

Long Acting Injectable (LAI) and Bipolar Disorder clinical studies planned for 2019

Gastroparesis Phase III program expected to begin

in Q2 2019

DSPD Phase II program expected to begin in Q3 2019

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Select Research & Development Milestones

Tradipitant

Initiate a Phase III study in Gastroparesis Q2 2019

Motion Sickness Phase II clinical study results Q3 2019

Atopic Dermatitis (EPIONE) Phase III clinical study results 1H 2020

Initiate a second Phase III study in Atopic Dermatitis Q1 2020

HETLIOZ®

Jet Lag Disorder sNDA PDUFA target action date 8/16/2019

File SMS sNDA Q3 2019

Initiate a Phase II study in DSPD Q3 2019

Fanapt®

Initiate a Long Acting Injectable formulation clinical study 2019

Initiate a clinical study in Bipolar Disorder 2019

Tradipitant

Atopic Dermatitis

Gastroparesis

Motion Sickness

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Tradipitant Clinical Development Programs

Innovative approach to treating millions of patients Tradipitant: NK-1R Antagonist

NCE exp. 2024 (2029 w/HW)

Atopic Dermatitis

Gastroparesis

Motion Sickness

Positive Phase II study results in 2018

Phase III program planned for 2019

Positive Phase II study results in 2017

Phase III program ongoing

Phase II program planned for 2019

The activation of NK-1R by the natural ligand Substance P is thought to be involved in the perception of itch, pain, behavioral stress response, cravings and nausea and vomiting signaling 1,2,3,4

1. George DT et al. Neurokinin 1 receptor antagonism as a possible therapy for alcoholism. Science. 2008; 319(5869):1536-92. Almeida TA, et al. Tachykinins and tachykinin receptors: structure and activity relationships. Current Medicinal Chemistry. 2004;11:2045-2081.3. Hargreaves R et al. Development of aprepitant, the first neurokinin-1 receptor antagonist for the prevention of chemotherapy-induced nausea and vomiting. Annals of the New York Academy of Sciences. 2011; 1222:40-48.4. Stander S et al. Neurophysiological and neurochemical basis of modern pruritus treatment. Experimental Dermatology. 2007;17:161-69.

Partial Clinical Hold

• Proposed 12-month safety studies currently subject to a FDA partial clinical hold and pending litigation

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Tradipitant: Atopic Dermatitis

• Approximately 9.8M diagnosed and 6.4M drug-treated AD patients2

• Management of pruritus is a key treatment goal for patients3

Atopic Dermatitis (AD): US Market

17,800,000Estimated US Prevalence1

Atopic Dermatitis: High Unmet Medical Need

1. National Eczema Association (2017).2. Decision Resource Group, Atopic Dermatitis Landscape and Forecast (November 2015).3. Adelphi – Atopic dermatitis Disease Specific Program – US 2014.

Local Administration(topical agents)

Systemic Administration(by mouth or injectable)

Antibiotics

AntihistaminesCorticosteroidsCalcineurin inhibitorsEucrisa (crisaborole)Moisturizers / Emollients

AntibioticsAntihistaminesCorticosteroidsCyclosporinDupixent (dupilumab)Immunomodulators

Tradipitant has the potential to become a first line pharmacological option for patients with pruritus in atopic dermatitis in need of systemic treatment

Atopic Dermatitis Treatment Options

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Tradipitant Phase II Study (2102): Atopic Dermatitis

Favors Tradipitant Favors Placebo Favors TradipitantFavors Placebo

Results reported in September 2017

Tradipitant treated patients showed clinically meaningful improvement in both worst itch and atopic dermatitis severity

Tradipitant Phase II Study (2102) results • Primary endpoint of average itch VAS did not show significance

due to high placebo effect and lack of sensitivity of this measure

• Significant improvements also shown in Clinical Global Impression scale (CGI-C), Patient Global Impression scale (PGI-C) and Patient Benefit Index (PBI)

Results presented at recent scientific and medical meetings• World Congress on Itch (October 2017)• American Academy of Dermatology (February 2018) • Georg Rajka International Symposium of Atopic Dermatitis (April 2018)• European Academy of Dermatology and Venereology Congress (September 2018)• American Society of Human Genetics (October 2018)• American Academy of Dermatology (March 2019)

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Study Design 8 weeks double-masked treatment Tradipitant 85mg BID versus placebo

Sites 65 in the United States

Enrollment Randomized Subjects = 500

PopulationAtopic dermatitis patients with significant chronic pruritus Refractory to conventional treatments (antihistamine/steroid treatments)

AssessmentsChange in Worst Itch as measured by a Numerical Rating Scale (NRS)Change in measures of lesion severity including SCORAD, EASI, and IGA

Tradipitant Phase III Study (EPIONE): Atopic Dermatitis Phase III study currently enrolling patients

Study results expected in 1H 2020

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Tradipitant: Gastroparesis

Previous treatments focused on prokinetic MOA (improving delayed gastric emptying):• metoclopramide• cisapride • domperidone

Gastroparesis and chronic unexplained nausea and vomiting share symptomatology1

1. Hasler 2007; Hejazi 2012; GpCRC 2011 Advanced Breath Diagnostics 2015; Pasricha 2015. 2. Rey et al J Neurogastroenterol Motil, Jan 2012.

Significant unmet medical need

FDA released clinical development guidance in July 2015

Estimated US Prevalence6,000,000 (1.8%)2

Up to 600,000 diagnosed1

12,000,000

Symptoms

Delayed Gastric Emptying

Future treatment focus is on patient reported symptoms:• Nausea • Vomiting• Postprandial fullness• Early satiety• Abdominal pain

Gastroparesis: US Market

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Tradipitant Phase II Study (2301): Gastroparesis

ITT Population (n=141)

Tradipitant n=73 Placebo n=68 p-value

Primary End Point

DD-Nausea -1.25 -0.73 0.0099

Secondary End Points

DD-% Nausea Free Days 28.8 15.0 0.0160

GCSI -0.93 -0.58 0.0223

PAGI-SYM -0.93 -0.65 0.0497

CGI-S -1.13 -0.74 0.0207

PGI-C 2.66 3.06 0.0429

Results reported in December 2018

*For DD-Nausea, DD-% Nausea Free Days, GCSI, PAGI-SYM and CGI-S, the values shown are changes from baseline.

AbbreviationsDD-Nausea: Daily Diary Nausea score (0-5)DD-% Nausea Free Days: Daily Diary Nausea Free Days percent (0-100)ITT: Intent To TreatGCSI: Gastroparesis Cardinal Symptom IndexPAGI-SYM: Patient Assessment of Gastrointestinal Disorders – SymptomsCGI-S: Clinician Global Impression of SeverityPGI-C: Patient Global Impression of Change

Tradipitant has the potential to become a first line treatment for patients with gastroparesis & the first new treatment option in almost 40 years1

1. Reglan (metoclopramide) initial FDA approval 1979.

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Tradipitant Phase II Study (2301): GastroparesisVomiting subpopulation showed greater improvements in average daily nausea score

Subpopulation analysis based on screening vomiting score on GSC-Daily Diary• Vomiting score average > 0 (at least 1 vomiting episode)• 101/141 of patient population (~70%)

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Tradipitant Phase II Study (2301): Gastroparesis

0

5

10

15

20

25

30

35

40

Placebo Tradipitant

ITT Population

0

5

10

15

20

25

30

35

40

Placebo Tradipitant

Vomiting Populationn=141 n=101

p= 0.0013 p= 0.0001

12%

33%

7%

36%

Complete Responder Analysis

Complete responder defined as nausea severity score ≤1 at week 4• Nausea severity scale is 0-5

% o

f com

plet

e re

spon

ders

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2019 Gastroparesis Program Activities• Phase II gastroparesis study results presented at Digestive Disease Week® in May 2019

• Held an end of Phase II meeting with FDA in May 2019

• Vanda plans to initiate a Phase III study in June 2019

2019 Gastroparesis Program Activities

Tradipitant: Gastroparesis

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Study Design 1 day study, double-masked treatment Tradipitant versus placebo

Sites 1 site in the United States

Enrollment Randomized Subjects – up to 150

Population Adults 18-75 years old

Assessments Changes in motion sickness parameters such as severity as measured by a questionnaire

Tradipitant Phase II Study: Motion Sickness Phase II study currently enrolling patients

Study results expected in Q3 2019

Circadian Rhythms

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Circadian Rhythms

1

2

3

Marketed in the US for the treatment of Non-24 in adults since 2014

Drive sales growth for existing indication

Add new indications

Launch in new geographies

Jet Lag DisorderSmith-Magenis SyndromeNon-24 Pediatric Delayed Sleep Phase Disorder

Marketed in Germany for the treatment of Non-24 in adults since 2016

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Non-24 is a Serious Circadian Rhythm DisorderKey demographics

~70% totally blind have Non-241

1:4000 in US (~80,000)2

Disruptednighttimesleep

Excessivedaytimesleepiness

Poor socialand occupationalfunctioning

Clinical characteristics

Misaligned circadian timing system

1. Dressman et al. Seventy Percent of Totally Blind People with Sleep Complaints Are Not Entrained to the 24 Hour Clock. SLEEP Conference 2012. Vanda Pharmaceuticals Inc. June 2012.2. Vanda estimate.3. Diagnostic and Statistical Manual of Mental Disorders, 5th Edition (DSM-5), American Psychiatric Association, March 2013, page 396-397.

Non-24 is comorbid with depressive and bipolar disorders3

Prevalence of Non-24 in the general population is unclear but appears rare in sighted individuals3

Blind individuals with Non-24

Sighted individuals with Non-24

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HETLIOZ® Net Product SalesH

ETLI

OZ®

Net

Pro

duct

Sal

es(In

milli

ons)

Robust growth since launch

Full year 2019 global net product sales guidance of $137 to $143 million

$13M

$44M

$72M

$90M

$116M

$0

$25

$50

$75

$100

$125

2014 2015 2016 2017 2018

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HETLIOZ® European Non-24 Market

• Approximately 130,000 totally blind individuals in Europe have Non-241

EU Non-24 Market Ongoing Activities

• Similar prevalence to US market

• No approved circadian regulators in EU

• Engagement with blind advocacy groups

• Reimbursement & marketing preparations

2019 Priorities

• Germany: Ongoing launch activities including Non-24 awareness campaign

• EU 5: Pricing dossier and strategy preparations for the 5 largest EU markets

• EU 6-28: Explore distribution partners for select remaining 23 EU markets

1. Vanda estimate.

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Jet Lag Disorder MarketUS Travelers demographics

78% of transmeridan travelers experience sleep disturbances3

Over 20 million US residents travel to destinations in Europe, the Middle

East and Asia each year1

# p

asse

nger

s/ye

ar

Time zones travelled4 6 8 10 12 14 16 18 20 22 24

Misaligned Circadian Timing System

Clinical Characteristics4Insomnia associated with

reduction in total sleep time Daytime SleepinessDaytime functional

impairment, general malaise, GI disturbance

1. US Department of Commerce, International Trade Administration, National Travel & Tourism Office. Profile of U.S. Residents Travelers Visiting Overseas Destinations: 2015 Outbound.2. Bureau of Transportation Statistics. Air Carriers: T-100 International Market (all carriers). August 2017.3. Cho K, Ennaceur A, Cole C, Suh C. Chronic jet lag produces cognitive deficits. J Neuroscience 20:RC66 (2000).4. International Classification of Sleep Disorders 3rd Edition (2014).

80% of US passengers traveling 5-8 time zones pass through 10 airports2

35% through JFK and Newark2

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.worldhum.com/features/eric-weiner/professor-gates-and-jet-lag-20090730/&ei=2poAVdnhJc3ZoASw-oD4Dw&bvm=bv.87920726,d.cGU&psig=AFQjCNGQWkbF1qQjqaITA65LHbWM4T_86A&ust=1426188340555233http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.webmd.com/ibd-crohns-disease/treat-crohns-15/living/crohns-rm-quiz&ei=t6YAVZyfMML1oAT4mYKoDA&psig=AFQjCNEpsuNDi-TvlUW81XIfDGSCNZf1xg&ust=1426192270911939

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HETLIOZ® Jet Lag Disorder – JET8 Study

Assessment Endpoint HETLIOZ® Placebo Difference p-value

Summary p-value Detail

PSG TST2/3* 216.4 156.1 60.3 p

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HETLIOZ® Jet Lag Disorder

1. Rajaratnum et al, The Lancet Vol. 373; No 9662 February 2009.

A HETLIOZ® sNDA is under review by the FDA with a PDUFA action date of August 16, 2019

HETLIOZ® clinical data and safety profile support potential as treatment option for jet lag disorder

Clinical Studies Patients (N) Design

JET8 (3107) 318 Circadian challenge of an 8 hour advance to a subject’s usual bedtime

JET5 (3101)1 411 Circadian challenge of a 5 hour advance to a subject’s usual bedtime

JET 25 A two-phase transatlantic travel study, with an observational travel phase (baseline) followed by a treatment phase

2101 study1 39 HETLIOZ® shifted circadian rhythms on the first night

4 Positive Clinical Studies

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No approved treatment

Smith-Magenis Syndrome

• 1/15,000-25,000 births in the U.S.1

• 5.3/100,000 in Europe2• Chromosomal deletion of 17p11.2• Rare mutations of the retinoic

acid 1 (RAI1) gene

• Daytime melatonin secretion

1. Orphanet ORPHA number 819.2. Smith et al. GeneReviews. 2001.

Severe sleep disorder:Strongest predictor ofmaladaptive behavior

deletion of 17p11.2

• Major physical, developmental & behavioral features

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HETLIOZ® Smith-Magenis Syndrome

Endpoints DescriptionHETLIOZ®

(n=25)Placebo (n=25)

Differencep-value

SubjectiveSleep Quality DDSQ Worst 50%* 0.67 0.27 0.0139

(Scale 1-5) DDSQ Overall 0.55 0.22 0.0155

Sleep Duration DDTST Worst 50%* 36.1 17.6 0.0556(minutes) DDTST Best 50% 46.6 23.4 0.0052

DDTST Overall 40.9 19.8 0.0134Objective

Sleep Duration Actigraphy TST Worst 50% 22.3 2.4 0.0309(minutes) Actigraphy TST Overall 20.1 1.9 0.0218

• The US Food and Drug Administration has granted orphan drug designation for HETLIOZ® for the treatment of SMS

• Vanda intends to meet with regulatory authorities and seek marketing authorization for the treatment of SMS patients with HETLIOZ®

*Primary endpoint

For DDSQ, DDTST, Actigraphy TST, the values shown are changes from baseline.

AbbreviationsTST: Total Sleep TimeSQ: Sleep QualityDDTST: Daily Diary Total Sleep TimeDDSQ: Daily Diary Sleep Quality

VEC-162-2401 is the largest placebo controlled study ever conducted demonstrating significant sleep improvements in patients with SMS

Study results reported in December 2018

Psychiatry

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Psychiatry

1

2

3

Marketed in the US for the treatment of Schizophrenia since 2010

Drive sales growth for existing indication

Add new indications

Launch in new geographies

Clinical studies planned for 2019• Bipolar Depression • Long Acting Injectable

Partnered in select non-US markets

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• Vanda owns global rights for Fanapt®

• Commercialized outside the US through partners

Schizophrenia: Fanapt®

• Patients frequently switch antipsychotic treatments due to side effects2

• Side effects include metabolic, weight and movement disorders

• About 1% of adult population worldwide is diagnosed with schizophrenia1

• About 3 million people in the US live with schizophrenia

• Fanapt® is a second-line treatment for schizophrenia

• Up to 25% of patients treated with some antipsychotics experience akathisia

1. NIMH.2. Prescribing Information for leading brands.

AkathisiaFrequently seen with antipsychotics

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Fanapt® Net Product Sales

Vanda initiated Fanapt® US promotion in April 2015

Full year 2019 global net product sales guidance of $78 to $82 million

Fana

pt®

Net

Pro

duct

Sal

es(In

milli

ons)

$66M

$74M $75M$77M

$0

$15

$30

$45

$60

$75

$90

2015 2016 2017 2018

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Financials – First Quarter 2019 Results

HETLIOZ® Net Product Sales $29.0MFanapt® Net Product Sales $18.8M

Total Revenue $47.7M

Cost of Goods Sold $5.1M Research & Development $13.3MGeneral & Administrative $31.0MIntangible Asset Amortization $0.4M

Operating Expense $49.8M

Net Income ($0.6M)

Cash1 $267.8M1. Cash, cash equivalents and marketable securities

3/31/2019

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Financials – Full Year 2019 Guidance1

Vanda expects to achieve the following financial objectives in 2019:

1. Guidance provided by Vanda on and as of May 1, 2019, Vanda undertakes no duty to update this guidance, and actual results may differ.2. Cash, cash equivalents and marketable securities.

Financial Objectives 2019 Guidance

Combined net product sales from both HETLIOZ® and Fanapt® $215 to $225 million

HETLIOZ® net product sales $137 to $143 million

Fanapt® net product sales $78 to $82 million

Year end 2019 Cash2 Greater than $260 million

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For more information on HETLIOZ®, please visit www.HETLIOZ.com

For more information on FANAPT®, please visit www.FANAPT.com

2019Forward-Looking StatementsStrategy for Long-Term SuccessMarketed AssetsClinical Development Pipeline: Select Research & Development MilestonesTradipitant��Atopic Dermatitis ��Gastroparesis��Motion SicknessTradipitant Clinical Development ProgramsTradipitant: Atopic DermatitisTradipitant Phase II Study (2102): Atopic DermatitisTradipitant Phase III Study (EPIONE): Atopic Dermatitis Tradipitant: Gastroparesis�Tradipitant Phase II Study (2301): GastroparesisTradipitant Phase II Study (2301): GastroparesisTradipitant Phase II Study (2301): GastroparesisTradipitant: Gastroparesis�Tradipitant Phase II Study: Motion Sickness Circadian RhythmsCircadian RhythmsNon-24 is a Serious Circadian Rhythm DisorderHETLIOZ® Net Product SalesHETLIOZ® European Non-24 MarketJet Lag Disorder MarketHETLIOZ® Jet Lag Disorder – JET8 StudyHETLIOZ® Jet Lag Disorder Smith-Magenis SyndromeHETLIOZ® Smith-Magenis SyndromePsychiatryPsychiatrySchizophrenia: Fanapt®Fanapt® Net Product SalesFinancials – First Quarter 2019 ResultsFinancials – Full Year 2019 Guidance1Slide Number 34Slide Number 35